Narcotic Drugs and Psychotropic Substances Act – Conviction – Acquittal – Appeal Allowed on Parity Grounds – Appellant (Accused No. 2) convicted under Section 8(c) read with Section 18 NDPS Act for possession of 5.5 kg opium – Trial Court imposed minimum sentence of 10 years RI and ₹1 lakh fine – Conviction affirmed by High Court – Co-accused (Accused No. 1) later acquitted by High Court on finding that prosecution failed to establish conscious possession of contraband – Prosecution witnesses, including seizure mediators and Excise Inspector, failed to identify who held the bag containing opium – Held: Evidence and trial being common to both accused, and State not challenging co-accused’s acquittal, appellant entitled to benefit of parity – Acquittal granted – Conviction and sentence set aside [Paras 1, 3, 4, 6, 8, 9, 10].

Witness Testimony – Contradictions and Uncertainty – Mediator Witness (PW1) unable to identify which accused was holding the bag of contraband – Turned hostile – PW5 (Excise Inspector) also vague in testimony – Did not clarify who transferred bag or who possessed it initially – High Court in co-accused’s case found it unsafe to convict on such weak evidence – Supreme Court noted same evidence applied to appellant – Held: No case of conscious possession made out – Conviction unsustainable [Paras 8, 9].

Principle of Parity – Joint Trial – Common Evidence – Co-accused Acquitted – Appellant convicted under same charge, in same case and on same evidence – Co-accused acquitted by High Court in Criminal Appeal No. 1775/2005 – State accepted the acquittal – Held: On principle of parity, appellant also entitled to acquittal – No need to reappreciate evidence – Appeal allowed [Paras 7, 8, 9].

NDPS Act – Conscious Possession – Recovery of Contraband – Appellant (A2) convicted under Section 8(c) r/w 18 NDPS Act for alleged possession of 5.5 kgs opium – Trial Court imposed minimum 10 years RI and ₹1 lakh fine – Conviction upheld by High Court – However, co-accused (A1) acquitted by High Court in separate appeal on identical evidence holding prosecution failed to establish conscious possession – Witnesses inconsistent on who carried the bag – Held: On principle of parity, appellant entitled to same relief [Paras 7–9].

NDPS Act – Section 8(c) r/w Section 18 – Commercial Quantity – Strict Compliance – Serious Penal Consequences – Supreme Court reiterated that where minimum sentence is 10 years, strict adherence to evidentiary standards is required – Weak and uncertain evidence cannot form basis of conviction in NDPS cases – Acquittal justified where possession not proved beyond reasonable doubt [Paras 8, 9].

Decision: Appeal allowed – Conviction and sentence under Section 8(c) read with Section 18(b) NDPS Act set aside – Appellant acquitted – Bail bonds cancelled – Sureties discharged [Paras 10, 11].

Civil Procedure – Settlement under Article 142 – Property Dispute – 33-Year Litigation – Dispute over ownership and possession of valuable properties at Sunder Nagar, Delhi – Multiple legal heirs, transfers, Wills, and agreements complicated ownership – Supreme Court, exercising powers under Article 142, appointed Hon’ble Mr. Justice (Retd.) Vipin Sanghi as Mediator – Parties reached a comprehensive settlement, transferring full rights, title, and interest in Suit Properties to the appellant company for ₹46 crores – Sale consideration to be paid in two tranches, partly through escrow mechanism depending on L&DO permission – Settlement Agreement recorded as decree – All civil appeals and connected litigations disposed of in terms of settlement [Paras 2–8]

Civil Suit – Specific Performance – Mediation Outcome – Settlement terms deemed sufficient for granting decree of specific performance in CS(OS) No. 2443 of 1993 – Parties agreed to prayers (b) and (c) of the suit – Supreme Court directed that suit pending before High Court of Delhi be decreed accordingly – No further claim survives inter se parties – Vendors to assist in execution of transfer documents including Sale Deed, POAs, Wills etc. [Paras 8(iv), 9, 10, 17, 21–22]

Property Law – Title and Possession – Ownership of Suit Property conclusively transferred to appellant company – Legal heirs of original owners acknowledged prior transfer deeds and Wills – Vendors declared to have no further interest – Possession and original documents to be handed over – Vendee entitled to mutation, registration, and conversion of land to freehold – Vendors to indemnify Vendee against any third-party claims including from Jagdambika Builders Pvt. Ltd. [Paras 2, 5, 7, Clauses 1–7, 13–20 of Settlement]

Alternative Dispute Resolution – Mediation Success – Long-standing real estate dispute settled via Court-referred mediation – Mediator facilitated a multi-party agreement involving corporate entities and numerous legal heirs – Court expressed appreciation for the Mediator’s role – Suggested possibility of resolving a related pending suit (CS(OS) No. 1578/1992 by Arun Batra) through the same process [Paras 11–15]

Constitution of India – Article 142 – Equitable Jurisdiction – Supreme Court exercised plenary powers to dispose of civil appeals and decree pending suit in High Court in terms of mutually agreed Settlement Agreement – Recognized as a complete and binding resolution of all disputes [Paras 8, 22(a)]

Decision: Appeals allowed – Orders of Delhi High Court dated 08-03-2017 set aside – CS(OS) No. 2443/1993 decreed in favour of appellant in terms of settlement – Connected contempt proceedings dropped – All parties bound by terms of Settlement Agreement dated 19/08/2025 and Supplementary Agreement – Litigation spanning over three decades finally concluded – Related suit by third party (Arun Batra) to proceed on merits but Court encouraged fresh mediation.

Criminal Law – Murder and Kidnapping – Acquittal – Accused (A-1) convicted under Sections 302, 364, and 201 IPC for allegedly abducting and murdering an auto driver – Trial Court and High Court found him guilty based on circumstantial evidence and hostile witness statements – Supreme Court finds no reliable evidence to prove kidnapping or last seen theory – Both key witnesses (PW-5 and PW-6) failed to identify the accused and denied witnessing the abduction – Held: Conviction based on misreading of evidence – No credible proof of A-1's involvement in the murder or abduction [Paras 1–2, 5–9, 13–15].

Witness Testimony – Hostile Witnesses – PW-5 and PW-6 initially stated under Sections 161 and 164 CrPC that they witnessed the abduction of the deceased by A-1 and others – However, during trial, they denied identifying any person involved and merely confirmed witnessing a “galata” under a banyan tree – They did not corroborate the kidnapping or inform PW-1 as alleged – Their statements failed to support the prosecution’s theory of last seen or abduction – Held: Their evidence is insufficient and unreliable for conviction [Paras 7–8, 12–13].

Circumstantial Evidence – Failure to Prove Chain of Events – Prosecution failed to establish that A-1 was last seen with the deceased or had exclusive knowledge of the incident – No direct evidence connecting A-1 to the murder – Motive based on prior animosity between parties was deemed insufficient without corroborative evidence – Supreme Court applied the “panchsheel” test and concluded that the chain of circumstances was not complete – Held: Conviction unsustainable [Paras 10–11, 13–14].

Decision: Appeal allowed – Conviction and sentence under Sections 302, 364, and 201 IPC set aside – Appellant A-1 acquitted – Directed to be released forthwith if not wanted in any other case [Paras 15–16].

Constitutional Law – Village Common Lands – Proprietary Rights – Haryana Amendment Validity – Civil Appeal by State against High Court's partial quashing of the Haryana Act No. 9 of 1992 – High Court struck down amendment expanding 'shamilat deh' definition under Punjab Village Common Lands (Regulation) Act, 1961 – Supreme Court examined impact on proprietors who contributed land under the 1948 Consolidation Act [Paras 1 to 3, 24 to 64]

Interpretation – 'Shamilat Deh' and Bachat Land – Haryana Act No. 9 of 1992 inserted Section 2(g)(6) defining lands reserved for common village purposes under 1948 Act as 'shamilat deh' – Proprietors challenged inclusion of unutilized (bachat) lands not earmarked for common use – Held: Only lands specifically reserved in the scheme for common purposes would vest with Gram Panchayat – Bachat lands not so reserved do not vest in Panchayat and must revert to contributing proprietors [Paras 2.1 to 2.6, 53]

Property Rights – Article 31-A and Compensation – Held: Reservation of land solely for Panchayat income purposes without compensation violates second proviso to Article 31-A – Reservation for common use (e.g. roads, schools) upheld, but revenue-generation reservation constitutes acquisition requiring compensation – Clarified that unless land was actually earmarked for common purpose and possession transferred, vesting in Panchayat does not occur [Paras 31 to 42, 46 to 51]

Judicial Precedents – Constitution Bench Judgments – Supreme Court analyzed key decisions: Ranjit Singh, Ajit Singh, Bhagat Ram – Ajit Singh held State must justify if land acquisition is for its own benefit – Bhagat Ram emphasized Panchayat's income land is State acquisition requiring compensation – These binding precedents upheld [Paras 24 to 51]

High Court Reasoning – Consistent Judicial View – Full Bench rightly relied on earlier Division Bench ruling in Gurjant Singh – Held: Bachat lands unutilized under consolidation scheme to be re-partitioned among proprietors in original share – Supreme Court upheld High Court’s reliance on consistent precedent and clarified that State itself had not challenged that aspect before [Paras 54 to 57]

Doctrine of Stare Decisis – Reaffirmed by Supreme Court – Longstanding judicial consensus on bachat lands reverting to proprietors was applied – Court held that such consistency over 100 judgments cannot be lightly disturbed unless manifestly erroneous – Followed principle of legal certainty and predictability [Paras 58 to 62]

Decision – Appeal Dismissed – Haryana’s appeal against High Court judgment dismissed – Land not specifically earmarked in the scheme does not vest with State – To revest with proprietors – No costs awarded [Paras 63 to 64]

Constitutional Law – Village Common Lands – Proprietary Rights – Haryana Amendment Validity – Civil Appeal by State against High Court's partial quashing of the Haryana Act No. 9 of 1992 – High Court struck down amendment expanding 'shamilat deh' definition under Punjab Village Common Lands (Regulation) Act, 1961 – Supreme Court examined impact on proprietors who contributed land under the 1948 Consolidation Act [Paras 1 to 3, 24 to 64]

Interpretation – 'Shamilat Deh' and Bachat Land – Haryana Act No. 9 of 1992 inserted Section 2(g)(6) defining lands reserved for common village purposes under 1948 Act as 'shamilat deh' – Proprietors challenged inclusion of unutilized (bachat) lands not earmarked for common use – Held: Only lands specifically reserved in the scheme for common purposes would vest with Gram Panchayat – Bachat lands not so reserved do not vest in Panchayat and must revert to contributing proprietors [Paras 2.1 to 2.6, 53]

Property Rights – Article 31-A and Compensation – Held: Reservation of land solely for Panchayat income purposes without compensation violates second proviso to Article 31-A – Reservation for common use (e.g. roads, schools) upheld, but revenue-generation reservation constitutes acquisition requiring compensation – Clarified that unless land was actually earmarked for common purpose and possession transferred, vesting in Panchayat does not occur [Paras 31 to 42, 46 to 51]

Judicial Precedents – Constitution Bench Judgments – Supreme Court analyzed key decisions: Ranjit Singh, Ajit Singh, Bhagat Ram – Ajit Singh held State must justify if land acquisition is for its own benefit – Bhagat Ram emphasized Panchayat's income land is State acquisition requiring compensation – These binding precedents upheld [Paras 24 to 51]

High Court Reasoning – Consistent Judicial View – Full Bench rightly relied on earlier Division Bench ruling in Gurjant Singh – Held: Bachat lands unutilized under consolidation scheme to be re-partitioned among proprietors in original share – Supreme Court upheld High Court’s reliance on consistent precedent and clarified that State itself had not challenged that aspect before [Paras 54 to 57]

Doctrine of Stare Decisis – Reaffirmed by Supreme Court – Longstanding judicial consensus on bachat lands reverting to proprietors was applied – Court held that such consistency over 100 judgments cannot be lightly disturbed unless manifestly erroneous – Followed principle of legal certainty and predictability [Paras 58 to 62]

Decision – Appeal Dismissed – Haryana’s appeal against High Court judgment dismissed – Land not specifically earmarked in the scheme does not vest with State – To revest with proprietors – No costs awarded [Paras 63 to 64]

Service Law – Eligibility under Reserved Quota – Appointment in TGT Post – Appellant working in 100% Government-aided Minority School applied under 25% quota reserved for Government Elementary School teachers – Selection process conducted and appointment letter issued based on recommendation of District Education Establishment Committee – After one year, appointment cancelled and recovery of salary ordered – Held: Though technically ineligible under the reserved quota, appellant was selected, appointed, and joined based on decisions of competent authorities – Appellant cannot be penalised for administrative lapses of the State [Paras 4–8, 20–28].

Administrative Law – Cancellation of Appointment – Recovery of Salary – Appellant's appointment was approved by multiple authorities including JSSC, District Education Establishment Committee, and District Superintendent of Education – Appointment cancelled after one year without fault of appellant – Held: Cancellation and salary recovery orders arbitrary and unsustainable – Authorities must bear consequences of their own errors – Cancellation and recovery orders quashed [Paras 23–28].

Relief – Reinstatement – Continuity of Service – No Back Wages – Supreme Court orders reinstatement of appellant with continuity of service and benefits except for back wages – Relief granted considering peculiar facts and equities of case – Order passed not to be treated as precedent [Paras 29–32].

Decision: Appeal allowed – Cancellation of appointment and recovery of salary quashed – Appellant to be reinstated with continuity in service but without back wages – Order passed in view of peculiar facts, not to be treated as precedent.

Criminal Procedure – Review of Section 482 CrPC Order – Maintainability – High Court had earlier dismissed accused’s petition under Section 482 CrPC seeking quashing of FIR – Accused filed a separate recall application, which was treated as a fresh case – Held: Once petition under Section 482 was dismissed, High Court became functus officio – Recall application not maintainable – [Paras 23-25]

Criminal Law – Interim Protection – Absence of Jurisdiction – Despite lack of jurisdiction, High Court granted accused 30-day protection from arrest and advised him to seek anticipatory bail – Held: Granting interim protection and advising anticipatory bail in a disposed matter was wholly erroneous – High Court exceeded its jurisdiction – [Paras 24-27]

Criminal Procedure – Anticipatory Bail – Earlier Application Rejected – Accused had previously been denied anticipatory bail by Sessions Court – No challenge made to that order – High Court overlooked this and created avenue to reapproach for bail – Held: This undermined judicial discipline and due process – [Paras 25-26]

Victim Rights – Challenge by Complainant – Complainant, as brother of rape survivor and first informant, entitled to challenge interim relief granted to accused in violation of procedural law – Directions issued by High Court found unsustainable – [Paras 2, 22, 27]

High Court Jurisdiction – Misuse of Review Mechanism – Treating recall application as new proceeding with fresh number unjustified – Such procedural irregularity criticized – [Paras 23-25]

Decision:

Appeal allowed – Directions in Paragraphs 3.1 and 4 of the High Court’s order dated 11/07/2025 in S.B. Criminal Misc. Application No. 235 of 2025 set aside – Sessions Court’s subsequent rejection of anticipatory bail on 05/08/2025 unaffected – High Court to consider any pending bail appeal independently – Liberty granted to accused to seek regular bail – [Paras 28-34]

Criminal Law – Quashing of FIR – FIR for Cheating and Criminal Conspiracy – Civil Dispute Given Criminal Colour – FIR Quashed – FIR was filed nearly five years after a failed commercial transaction involving alleged defective machinery supplied under a sale agreement – Supreme Court found that allegations, even if taken at face value, did not disclose any fraudulent or dishonest intention at inception – No ingredients of cheating under Section 420 IPC or conspiracy under Section 120B IPC made out – FIR, chargesheet, and proceedings quashed [Paras 1, 5-10, 15-17, 21, 23].

Quashing of Proceedings – Section 482 CrPC – Allegations Vague and Mala Fide – Continuation of Proceedings an Abuse of Process – High Court erred in dismissing application under Section 482 CrPC despite absence of mens rea and presence of mala fide intent in filing FIR – Criminal process cannot be used as substitute for civil remedies or personal vendetta – Parameters of Bhajan Lal case applied – FIR quashed [Paras 10, 16-21].

Mens Rea – Fraudulent Intention at Inception – Essential for Offence of Cheating – Breach of Contract Not Cheating – Failure to perform contractual obligations or deliver goods of agreed specification, without more, does not amount to criminal offence – Culpable intention must exist at the inception – Such intention not established from FIR or chargesheet – Allegations held to be civil in nature [Paras 14-18].

Delay in Filing FIR – Impact on Credibility – FIR Filed Five Years After Transaction – Complainant failed to justify delay – Supreme Court viewed delay as a factor casting doubt on bonafides of prosecution – Held: Delay further supports inference of civil dispute being dressed as criminal complaint [Para 17].

Misuse of Criminal Law – Courts Must Be Vigilant – Observations in Vishal Noble Singh Case Followed – Supreme Court cautioned against use of criminal justice system to achieve oblique motives or settle personal scores – Judicial system must not be burdened with mala fide criminal complaints [Para 22].

Final Decision – Appeal and Writ Petition Allowed – High Court’s Order Set Aside – FIR No. 11/2023 dated 14.02.2023, Chargesheet dated 27.07.2023, and all consequential proceedings quashed – No prima facie case made out for cheating or conspiracy – Criminal law not a tool for enforcement of private contracts [Paras 23-24].

Waqf Amendment Act, 2025 – Constitutional Challenge – Interim Relief Denied – Multiple petitioners challenged constitutional validity of provisions of Waqf (Amendment) Act, 2025 alleging arbitrariness, discrimination, and infringement of fundamental rights – Supreme Court rejected prayer for stay of entire statute but granted limited interim relief in respect of certain provisions – Held: Presumption of constitutionality stands, no prima facie case made out for total stay – Certain clauses stayed or limited pending rulemaking or final adjudication [Paras 1, 120, 209].

Definition of Waqf – Five-Year Practice of Islam Condition – Section 3(r) – Provision requiring dedication by a person showing Islamic practice for at least 5 years held not arbitrary – However, implementation stayed pending rulemaking to define mechanism for ascertaining practice – Purpose is to avoid misuse via fraudulent conversions – No stay on entire definition, only limited part stayed [Paras 132–140, 209(i)].

Waqf by User – Deletion of Clause (i) of Section 3(r) – Validity Upheld – The deletion of concept of ‘waqf by user’ upheld prospectively – Court observed that for decades, registration was mandatory and waqfs could have complied – Held: Concept prone to misuse; legislature’s power to amend statute upheld – No retrospective impact on vested waqf rights [Paras 143–152].

Wrongful Declaration of Waqf – Section 3C – Partial Stay Granted – Court upheld inquiry mechanism for identifying government land wrongly declared as waqf – However, stayed proviso to sub-section (2) and sub-sections (3) and (4) as they allowed executive action to change status without judicial determination – Held: Only Tribunal can determine title, not revenue officer [Paras 153–167, 209(ii), (iii)].

Protected Monuments – Section 3D – Declaration of Waqf Prohibited – Provision barring declaration of protected monuments as waqf upheld – Court observed such monuments are national heritage and religious practices remain unaffected under existing heritage law – Argument of interference in Islamic religious practice rejected [Paras 168–172].

Tribal Areas – Section 3E – Declaration of Waqf Prohibited – Provision barring declaration of Scheduled/Tribal land as waqf upheld – Based on protection for vulnerable communities under Fifth and Sixth Schedules – Provision has nexus with object sought to be achieved and is not arbitrary [Paras 173–178].

Composition of Waqf Boards and Councils – Inclusion of Non-Muslims – Section 9 and Section 14 – Court limited number of non-Muslim members to 4 (Council) and 3 (Board) – Though inclusion not stayed, directed cap to preserve character – Function of Board held largely secular – Appointment of Muslim CEO encouraged but not mandated [Paras 179–189, 209(iv), (v)].

Registration of Waqf – Bar on Enforcement by Unregistered Waqfs – Section 36(10) – Validity Upheld – Court upheld bar on institution of legal proceedings on behalf of unregistered waqfs – Provision aligns with past recommendations and earlier legal framework – Six-month window and judicial discretion to condone delay provide sufficient protection [Paras 190–192].

Evacuee Waqf Properties – Section 108 – Deletion Upheld – Court found provision redundant as Evacuee Property Act was repealed – Deletion does not impair any constitutional right [Paras 203–205].

Overriding Effect Clause – Section 108A – Deletion Permissible – Provision existed only from 2013–2025 – Legislature competent to delete earlier overriding clause – Deletion held valid [Paras 206–208].

Limitation Act – Application to Waqf Property – Section 107 – Validity Upheld – Application of general limitation law to waqf proceedings upheld as removing earlier special treatment – Not discriminatory [Paras 198–202].

Final Decision – Entire Act Not Stayed – Limited Provisions Stayed – Directions Issued – Court declined stay on impugned Act – Issued specific directions to limit possible misuse or ambiguity – Observations held prima facie and not binding for final adjudication on merits [Para 209].